Michael Hodges

There is a huge difference between copy trading and social trading. This difference can be summed up by two letters, E and A and I don't mean an expert adviser. The E is for education, the A is for approach. Copy trading is not a bad thing but it is fundamentally different from social trading because it does not focus or care about education and the approach is making easy money. Of course making easy money is great and without doubt it is a good idea for a newbie trader to follow in the footsteps of those who are more knowledgeable. What is not good is trying to get rich quick through copy trading because you will have just as many problems with it, or more, as you have already had trying to trade on your own.

The thing today is that many of the brokers who now support copy trading are calling it social trading. Their platforms are great, there is nothing wrong with the services but there is one notable difference between what you get using iFollow, the Binary Replicator or the Tradesmarter social trading features and true social trading; there is no interaction between the traders, the leaders or the followers. What you tend to get is a leader board or feed listing the top traders, a great tool don't get me wrong, but no real way to learn from those traders are doing.

This is where social trading comes into play. Social trading encompasses the idea of copy trading but adds many layers to it. First and foremost it is about education and furthering the body of trading knowledge. The best part of social trading is forums and blogs like this very one you are reading today. Through forums and blogs traders, leaders and followers can get to know each other and exchange knowledge. The newbie can learn not only what a leader is doing but why, can ask questions and can learn. This way the newbie can become the master, can learn to trade for themselves and not have to rely on others.

Keep on [URL="http://socialtradingbinaryoptions.com/types-of-social-trading/"]copy trading binary options[/URL], its a great way to enjoy the markets and a stepping stone to greater things!